Plug Power Inc (NASDAQ:PLUG) shares closed slightly down on Monday as the company navigates recent market dynamics.
The stock is stabilizing after recent weakness tied to worries that higher interest rates could hurt its capital-intensive growth plans.
Here’s what investors need to know.
Why Plug Power Stock Fell After Kevin Warsh Fed Nomination
Plug Power’s stock faced bearish pressure last Friday after President Donald Trump nominated former Federal Reserve governor Kevin Warsh as Federal Reserve chair, raising fears of a more hawkish monetary policy.
As a hydrogen fuel-cell company that remains unprofitable, Plug Power must continually raise capital, and higher interest rates could make financing more expensive, impacting its growth trajectory.
The company recently announced the completion of a significant milestone in its European expansion, with 100 MW of PEM GenEco electrolyzer installations at Galp’s Sines Refinery.
This project is expected to generate up to 15,000 tons of renewable hydrogen annually, showcasing Plug Power’s commitment to reducing greenhouse gas emissions while expanding its footprint in the renewable energy sector.
Short-Term Weakness: What It Means For Investors
Plug Power is currently trading 8.9% below its 20-day simple moving average (SMA) and 13.8% below its 100-day SMA, indicating short-term weakness. Shares have increased by 13.58% over the past 12 months and are currently positioned closer to their 52-week lows than highs.
The RSI is at 43.44, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
Plug Power’s Business Model
Plug Power is building an end-to-end green hydrogen ecosystem, from production, storage and delivery to energy generation. The company plans to build and operate green hydrogen highways across North America and Europe, delivering its solutions directly to customers and through joint venture partners in various markets, including material handling and power generation.
This focus on renewable energy solutions positions Plug Power as a key player in the transition to cleaner energy, especially as global demand for hydrogen solutions continues to grow. The company’s recent projects, such as the one in Europe, highlight its commitment to expanding its capabilities and market reach.
Analysts Are Split On Earnings Outlook
Investors are looking ahead to the next earnings report on March 2.
- EPS Estimate: Loss of 11 cents (Up from $-1.65 year-over-year)
- Revenue Estimate: $218.70 million (Up from $191.47 million YoY)
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $2.38. Recent analyst moves include:
- TD Cowen: Downgraded to Hold (Lowers target to $2 on Jan. 9)
- Clear Street: Upgraded to Buy (Lowers target to $3 on Dec. 31, 2025)
- Canaccord Genuity: Hold (Maintains target to $2.50 on Nov. 20, 2025)
Top ETF Exposure
- State Street SPDR S&P Kensho Clean Power ETF (NYSE:CNRG): 2.85% Weight
- Global X Hydrogen ETF (NASDAQ:HYDR): 12.33% Weight
- Research Affiliates Deletions ETF (NASDAQ:NIXT): 1.44% Weight
Significance: Because Plug Power carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
PLUG Shares on Monday
PLUG Price Action: Plug Power shares closed Monday down 1.61% at $2.08, according to Benzinga Pro data.
Image: Shutterstock
